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European Chemical Policy and the United States: The Impacts of REACH

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Listed:
  • Ackerman, Frank
  • Stanton, Elizabeth A.
  • Massey, Rachel

Abstract

The European Union is moving toward adoption of its new Registration, Evaluation and Authorization of Chemicals (REACH) policy, an innovative system of chemicals regulation that will provide crucial information on the safety profile of chemicals used in industry. Chemicals produced elsewhere, such as in the United States, and exported to Europe will have to meet the same standards as chemicals produced within the European Union. What is at stake for the U.S. is substantial: we estimate that chemical exports to Europe that are subject to REACH amount to about $14 billion per year, and are directly and indirectly responsible for 54,000 jobs. Revenues and employment of this magnitude dwarf the costs of compliance with REACH, which will amount to no more than $14 million per year. Even if, as the U.S. chemicals industry has argued, REACH is a needless mistake, it will be far more profitable to pay the modest compliance costs than to lose access to the enormous European market.

Suggested Citation

  • Ackerman, Frank & Stanton, Elizabeth A. & Massey, Rachel, 2006. "European Chemical Policy and the United States: The Impacts of REACH," Working Papers 37242, Tufts University, Global Development and Environment Institute.
    • Handle: RePEc:ags:tugdwp:37242
    DOI: 10.22004/ag.econ.37242
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    File URL: https://ageconsearch.umn.edu/record/37242/files/06-06USREACH.pdf
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    2. Sylvain Béal & Marc Deschamps, 2016. "On compensation schemes for data sharing within the European REACH legislation," European Journal of Law and Economics, Springer, vol. 41(1), pages 157-181, February.
    3. Sylvain Béal & Marc Deschamps, 2014. "On compensation schemes for data sharing within the european REACH legislation," Working Papers hal-01377925, HAL.
    4. Zaki Laïdi, 2007. "The Unintended Consequences of European Power," Les Cahiers européens de Sciences Po 5, Centre d'études européennes (CEE) at Sciences Po, Paris.

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